Office-Tower Bonds Are Wildly Popular Despite Quiet Downtowns
- Empty offices are no deterrent to investors financing them
- But Deutsche Bank sees up to 31% drop in office-space demand
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Investors are pouring money into bonds backed by U.S. offices, shrugging off concerns about whether workers will ever fill them up like they did before the pandemic.
About a third of all of this year’s commercial mortgage backed securities tied to single properties -- nearly $4 billion in total -- have helped finance prime office towers in large city centers, according to data compiled by Bloomberg. That’s despite the fact that Covid-19 has eviscerated demand for office space, decimating rents and slashing valuations.